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Trump unleashes '100% tariffs' nuclear bomb! Warns all countries: Dare to impose digital taxes on US companies, will tear up all trade agreements.
U.S. President Donald Trump has once again issued a trade threat that has shaken global markets. According to the latest news, Trump has forcefully warned that any country attempting to impose a "Digital Services Tax (DST)" on American companies will immediately face a comprehensive retaliatory tariff of up to 100%. He further threatened that this tariff would unconditionally override any existing trade agreements, sparking strong concerns over a full-scale escalation of global trade wars.
(Previous context: OpenAI's new model GPT-5.6 blocked: Trump administration demands phased release) (Background supplement: Trump confirms lifting of the Strait of Hormuz blockade: Iran agrees to indefinite nuclear facility inspections, frozen funds to be used entirely for purchasing "American agricultural products")
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The shadow of a global trade war once again looms over the macro market. U.S. President Donald Trump has issued a devastating tariff threat regarding the "Digital Services Tax (DST)" that multiple countries are seeking to impose on American tech giants.
100% tariffs across the board, indiscriminately hitting all imported goods
Trump clearly drew a red line in his latest statement, stating with extreme toughness: "Any country that imposes a digital services tax on American companies will immediately face a 100% tariff on all goods exported to the United States."
In recent years, regions including several European countries, Canada, and India have actively pushed for the imposition of digital services taxes on multinational tech giants (such as Google, Meta, Apple, Amazon, etc.) to ensure that companies earning massive digital advertising and service profits locally can keep tax revenues in those regions. However, this move has consistently been viewed by the U.S. as "unfair targeted taxation" against American companies.
Overrides all trade agreements, claims "immediate effect"
To demonstrate his determination to defend the interests of American tech giants, Trump's warning is not limited to the tariffs themselves but directly challenges the existing international trade order. He further emphasized:
This means that once Trump's policy is implemented, even allied countries with bilateral free trade agreements (FTAs) with the U.S. or protected under the World Trade Organization (WTO) framework, if they dare to impose digital taxes on American companies, all trade protection umbrellas will instantly become invalid, facing devastating blows of doubled import costs.
Tech giants breathe a sigh of relief? Global supply chain could face a new storm
Trump's remarks are seen as a strong pressure on the fiscal and trade policies of countries around the world. For large tech companies on Wall Street, this is undoubtedly a shot in the arm, likely using U.S. power to block other countries from eroding their overseas profits. However, for the global macro economy and supply chains, this is an extremely dangerous signal.
Market analysts worry that if the indiscriminate 100% tariffs are truly implemented, it will inevitably trigger retaliatory trade sanctions from various countries. This would not only fuel imported inflation in the U.S., forcing the Federal Reserve (Fed) to reassess interest rate policies, but would also deal a heavy and indelible blow to the already fragile international trade system.